Published On: January 4, 2026Tags: , , , ,

Choosing the right productivity tools can make a huge difference for your startup. We break down Google Workspace and Office 365, comparing their business email features, collaboration apps, AI tools, and pricing, so you can find the perfect fit.

TL;DR

  • Google Workspace and Office 365 both offer business email, collaboration apps, and AI tools.
  • Gmail, part of Google Workspace, is known for its user-friendly interface, while Outlook offers a traditional look and feel for your business email.
  • Both platforms offer AI tools and features, such as Gemini in Google Workspace and Copilot in Office 365. AI can help with tasks like email drafting, document creation, meeting notes and more.
  • Google Workspace offers a variety of pricing plans suitable for small and medium businesses and is generally considered a better choice for startups because of its affordability and ease of use.

Whether you’re a startup founder, a small business owner, or an IT decision-maker, this guide is for you. It’s also for anyone interested in understanding the differences between Google Workspace and Office 365.

People working in an office

Professional Email for a Small Business

Both Google Workspace and Office 365 offer business email apps, with a range of features to help you stay organised and productive. While Google’s Gmail is popular because of its easy-to-use interface and powerful search features, Microsoft’s Outlook is known for its traditional look and feel.

Gmail vs Outlook

Gmail for business, part of Google Workspace, comes with additional features on top of the classic user-friendly interface. It allows you to set up a professional email address using your company’s name, offers robust spam protection, plenty of storage space, and access to the latest AI features for drafting emails and managing your inbox.

Gmail is also integrated with other Google apps for communication, such as Chat, Meet, Google Voice, and Calendar.

Microsoft’s counterpart, Outlook (part of Office 365) offers a similar business email service. It features the familiar Outlook for email, known for its reliability, and integrates seamlessly with other Microsoft Office apps. Outlook is generally popular with well-established businesses that are used to traditional desktop applications.

Gmail app on a laptop

Collaboration Apps for a Small Business

Google Workspace and Office 365 both offer a variety of collaboration apps, including document editors, spreadsheets, presentations, and chat.

Docs, Sheets, and Slides vs Word, Excel, and PowerPoint

Google Workspace’s apps are designed to be easy to use and collaborate on from anywhere using a browser such as Chrome, while Office 365’s apps offer the best experience through individual desktop apps.

Google’s collaboration apps, now boosted by AI features, including Google Docs, Sheets, Slides, and Google Drive, are designed for real-time editing and sharing. The real magic lies in the simultaneous collaboration feature, which allows team members to work together on documents, spreadsheets, and presentations. This is particularly advantageous for hybrid and remote teams. At Refractiv, we helped dozens of businesses become more productive with Google Workspace training.

Microsoft’s suite offers collaboration apps such as Word, Excel, PowerPoint, and OneDrive. These applications are known for their comprehensive features and compatibility with existing Microsoft Office files. While real-time collaboration is possible, it might not be as seamless as Google’s solution, and as mentioned before, installing the apps on your device is usually required for the best experience.

Microsoft Office 365 Apps on mobile

AI Tools for Small Businesses

Both Google Workspace and Microsoft Office 365 are rapidly expanding their AI offering to help users be more productive. Here is a comparison of some of the key AI features of the two platforms.

Gemini vs 365 Copilot

In Gmail, Gemini offers contextual Smart Compose and reply generation, email summarisation, and can pull information from your emails to suggest scheduling a meeting. Copilot in Outlook provides similar email features, meeting scheduling, and advanced inbox management.

For document creation, both AI companions can assist with creative writing, formatting, image generation, and summarisation.

During meetings, Gemini which is integrated with Google Meet, provides real-time transcription and translation, meeting summaries, and noise reduction, while Copilot in Teams acts as an interactive assistant, managing tasks, and enhancing collaboration.

Both Google Workspace and Office 365 are rapidly integrating AI across their apps, with new features and capabilities being added all the time.

You can read more about Gemini in our dedicated guide or request a free trial if you’re already using Google Workspace.

Google Workspace vs Office 365 Pricing for Small Businesses

Google Workspace offers a variety of pricing plans to fit your needs. The pricing is based on the number of users and the features you need. Productivity features for startups are included even in its basic plan, making it suitable for small businesses with tight budgets. For the latest Google Workspace prices visit our dedicated page.

As you scale, you can upgrade to more advanced plans for additional storage, security features, and support. You can also get a free 14-day trial of any Google Workspace plan through a local UK Google Partner such as Refractiv.

Microsoft’s pricing model also varies according to the plan and number of users. While it is generally perceived as slightly costlier than Google Workspace, it offers a range of plans tailored to different business needs.

Is Google Workspace Better Than Office 365 for Small Businesses?

Google Workspace is a better choice for small and medium businesses for a number of reasons. It’s more affordable and user-friendly since there’s a high chance your employees already have experience using Gmail or Google Drive. The seamless real-time collaboration in Google Workspace applications is also a significant advantage for startups and remote or hybrid teams.

If your organisation is already using Google services like Gmail, Google Drive, and Google Calendar, transitioning to Google Workspace would be a natural progression.

The Refractiv team can help you find the right Google Workspace plan for your small business. Get in touch for a free consultation.

People working at a desk in an office

Why do companies use Microsoft Office instead of Google?

There are a few reasons why companies might use Microsoft Office instead of Google. Microsoft Office can feel familiar to many people. However, Google Workspace is catching up quickly, and it is now a viable alternative for businesses of all sizes.

Is Google Workspace worth it for Small Businesses?

Yes, Google Workspace is worth the investment for small businesses. Its affordable pricing, real-time collaboration, and user-friendly interface make it an excellent choice for startups looking to streamline communication and productivity. Google Workspace is also very scalable, so you can easily add users and features as your business grows. Check out the plans currently available.

Can I use Google Workspace and Office 365 together?

Absolutely. This is known as a hybrid approach, where businesses leverage the strengths of both platforms. For instance, you can use Google Workspace for email and collaboration while using Office 365 for advanced data analysis in Excel or complex document formatting in Word. However, managing two separate platforms might require careful planning and integration to ensure a seamless workflow.

With over 10 years of experience, the Refractiv team can help you choose the right productivity apps for your startup and set up a free Google Workspace trial for your UK business. Get in touch today for a free consultation, or visit our Google Workspace pricing page to find the right plan for your startup.

About Refractiv
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As a Google Cloud Partner, we’ve helped hundreds of organisations to successfully deploy and optimise their use of Google Workspace. Get advice every step of the way, from strategic planning to implementation and ongoing support.